"Subcontractor Agreement Template"

What Is a Subcontractor Agreement?

A Subcontractor Agreement is a written or typed document that establishes the terms and conditions of an agreement between two parties - a contractor and a subcontractor.

Alternate Name:

  • Subcontractor Contract.

The difference between a subcontractor and an independent contractor is that the latter signs a Contractor Agreement (or Service Agreement) directly with the customer who wishes to complete a project. The independent contractor bears responsibility for the project completion but may choose to hire subcontractors or employees using an employment contract to finish the job or a portion of it. First of all, the contractor must be sure that the client agrees to authorize the subcontracted work and hire a subcontractor who will assist in the completion of the project.

Download a free Subcontractor Agreement template via the link below or draft a more personalized document using our online form builder.

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How to Write a Subcontractor Agreement?

Subcontractor Agreements must cover the obligations and expectations of the parties. Use concise and clear language to avoid misunderstandings or ambiguities in the future. Follow these steps to create a Subcontractor Agreement:

  1. Define the scope of the project - the work necessary and the location of the project. You may include the subcontractor obligations in case the customer is dissatisfied or requests changes.
  2. Specify the duration of the work and agree on a deadline. To give the customer an opportunity to assess the subcontractor's work, create a project schedule.
  3. State the amount of money to be paid to the subcontractor and the payment method. Record the maximum work hours and added time.
  4. Indicate the information the subcontractor should keep confidential. Most contractor agreements state that the contractor cannot share any information with the subcontractor to create a conflict with a customer.
  5. Add a non-compete clause - the subcontractor will promise not to attract customers away from the contractor.
  6. Make the customer's insurance responsibilities clear - the contractor may not have insurance to cover a subcontractor's errors or any accidental damage they will entail.
  7. Include a work-for-hire clause - all the work belongs to the contractor. The subcontractor does not gain any future income in relation to this project once it is completed.
  8. Permit or restrict hiring more people to do the work.
  9. Describe the warranties - the promises made by both parties regarding compliance with specifications, work quality, and professional work behavior.

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Subcontractor Agreement
This Subcontractor Agreement (hereinafter referred to as the “Agreement”) is
entered into as of ________________ by and between _________________________,
with a mailing address of ________________________________________________
__________________________________ (hereinafter referred to as the “Contractor”)
and ___________________________, with a mailing address of _________________
_____________________________________________ (hereinafter referred to as the
“Subcontractor”), collectively referred to as the “Parties”, both of whom agree to be
bound by this Agreement.
IN CONSIDERATION OF the Subcontractor performing the Services and the
Contractor paying for the Services, the Parties agree to the following:
1. Services. The Subcontractor agrees to provide the following services and/or
materials:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
___________________________________ (hereinafter referred to as the “Services”).
2. Compensation. The Contractor and Subcontractor agree to the following Payment
and Payment Terms:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
If necessary, the Subcontractor agrees to provide the Contractor with a breakdown of
all costs (i.e., materials and labor) upon the Contractor’s request.
The final payment will be made within ______ days of completion of the Services.
Payments must be made to the Subcontractor by:
❏ Credit card
❏ Check
❏ Money order
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Subcontractor Agreement
This Subcontractor Agreement (hereinafter referred to as the “Agreement”) is
entered into as of ________________ by and between _________________________,
with a mailing address of ________________________________________________
__________________________________ (hereinafter referred to as the “Contractor”)
and ___________________________, with a mailing address of _________________
_____________________________________________ (hereinafter referred to as the
“Subcontractor”), collectively referred to as the “Parties”, both of whom agree to be
bound by this Agreement.
IN CONSIDERATION OF the Subcontractor performing the Services and the
Contractor paying for the Services, the Parties agree to the following:
1. Services. The Subcontractor agrees to provide the following services and/or
materials:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
___________________________________ (hereinafter referred to as the “Services”).
2. Compensation. The Contractor and Subcontractor agree to the following Payment
and Payment Terms:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
If necessary, the Subcontractor agrees to provide the Contractor with a breakdown of
all costs (i.e., materials and labor) upon the Contractor’s request.
The final payment will be made within ______ days of completion of the Services.
Payments must be made to the Subcontractor by:
❏ Credit card
❏ Check
❏ Money order
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TEMPLATEROLLER.COM
Checks
or
money
order
payments
must
be
mailed
to
_____________________________________________________________________
_____________________________________________________________________
3. Schedule. The Services will begin ___________ on ____________________ and
must be completed by ___________ on ____________________.
4. Termination. This Agreement will automatically terminate when the Services are
completed and all payments are received.
If either Party does not fulfill its obligations under this Agreement the other Party can
terminate the Agreement for breach of contract. The non-breaching Party must notify
the breaching party of their intent to terminate the Agreement and provide the
breaching party ____________________ days to correct the breach. If the breach is
not corrected within that time, the non-breaching party can seek legal remedy pursuant
to Section 11 of the Agreement.
6. Warranty. The Subcontractor warrants the Services for ______________________
years against all defects in materials and workmanship.
7. Indemnity. The Subcontractor agrees to defend and indemnify the Contractor, as
well as any of the Contractor’s affiliated entities and individuals from all third-party
claims that arise out of or relate to the Subcontractor’s work.
8. Relationship of the Parties.
● No Exclusivity. The Parties understand that this Agreement is not an exclusive
arrangement. The Parties agree that they are free to enter into other similar
agreements with other parties.
● Independent Contractors. The Parties to this Agreement are independent
contractors. Neither Party is an agent, representative, partner, or employee of
the other Party.
9. Waiver. Neither Party can waive any provision of this Agreement, or any rights or
obligations under this Agreement, unless agreed to in writing by the Parties. If any
provision, right, or obligation is waived, it’s only waived to the extent agreed to in
writing.
10. Amendments. This Agreement may be modified as needed. To make a
modification, the Parties have to agree to the modification in writing. The terms of this
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Agreement will apply to any Amendment the Parties make.
11. Dispute Resolution.
● Negotiation. In the event of a dispute, the Parties agree to work towards a
resolution through good faith negotiation.
● Mediation or Arbitration. Either Party may initiate mediation or binding
arbitration in the State of ___________________.
● Litigation and Choice of Law. If litigation is necessary, this Agreement will be
interpreted based on the laws of the State of ___________________, regardless
of any conflict of law issues that may arise.
● Attorney’s Fees. The prevailing Party will be able to recover its attorney’s fees
and other reasonable costs for a dispute resolved by binding arbitration or
litigation.
13. Entire Agreement. The Parties acknowledge and agree that this Agreement
represents the entire agreement between the Parties.
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
CONTRACTOR
SUBCONTRACTOR
Name: ______________________
Name: ______________________
Signed: _____________________
Signed: _____________________
Date: _______________________
Date: _______________________
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